Key Takeaways
- The XRP price has risen due to the potential to alleviate U.S.-China trade war tensions.
- Interest in XRP has spiked as the Ripple case nears its conclusion, and the SEC chair change raises hopes for an appeal withdrawal.
- XRP remains a very high-risk investment, but catalysts are on the horizon that could help support bullish momentum.
Optimism surrounding a potential SEC withdrawal of an appeal against Ripple Labs and settlement of the final judgment after Trump’s nominee for SEC Chair, Paul Atkins, was sworn in has seen the price of the token surge. As of 5:45 p.m. ET, the cryptocurrency’s token price was up 2.4% over the previous 24 hours of trading.
According to pro-crypto lawyer Bill Morgan, the rising optimism has boosted the prospects of XRP, with growing interest reflecting market sentiment towards the anticipated conclusion of the case. The attorney highlighted recent activity in the newly launched US XRP futures market, stating:
“Institutional and retail interest in XRP continues to increase […] surge in active XRP addresses immediately before XRP futures going live.”
Coin with the Most Utility
According to onchain data, active crypto addresses jumped 67.5% between April 19 and 20, just before Coinbase launched its XRP derivatives products. XRP Futures are typically a stepping stone toward spot ETFs, influencing XRP’s price trends. Key attributes for XRP Futures include giving retail and institutional investors exposure to the token without worrying about owning it. Teucrium CEO Sal Gilbertie highlighted the significance of XRP, stating:
“XRP is the coin with the most utility. Bitcoin is a store of value, but XRP has a true use case. There is just no doubt about it.”
Earlier in April, Earlier this month, Teucrium launched the first US XRP ETF, 2X XRP ETF, which aims to deliver twice the daily price performance of XRP. The launch is speculative, hinting at a possible approval of an unlevered spot XRP ETF.
Trump Backing off his Criticism of Powell
This development followed President Donald Trump’s announcement that the US would substantially revise the Tariffs on Chinese products. According to a report by Reuters, the Trump administration was willing to lower the taxes on Chinese imports from the current 145% to between 50% and 65%.
Experts believe another incentive that could have impacted the XRP price was Trump’s backing off his criticism of Federal Reserve Chair Jerome Powell, who stated that he had no intentions of firing him or replacing him as the leader of the US Central Bank. Also, the token has benefited from the news that Trump Media was planning to launch an exchange-traded fund (ETF) that could integrate stocks and cryptocurrencies into a tradable security.
Conclusion
Despite the latest gains, the XRP price is still down, trading at 33% lower than the all-time high achieved earlier this year. Even amid the significant valuation pullback, it’s clear that cryptocurrency remains a very high-risk investment. However, the recent confirmation that XRP would form part of the proposed United States’ digital-asset reserve program opens the door for a meaningful bullish catalyst over the long haul. With signs that the SEC is warming up to ETFs, any confirmations would boost the XRP price.
Frequently Asked Questions
What determines XRP prices?
The principle of supply and demand mainly determines XRP prices. A fixed supply makes XRP a scarce resource.
What makes XRP special?
Created in 2012 specifically for payments, XRP can settle transactions on the ledger in 3-5 seconds. It was built to be a better Bitcoin—faster, cheaper, and greener than any other digital asset.
Is it worth buying XRP now?
If you’re highly tolerant of risk, patient, and willing to invest in small amounts over time, it’s still worth buying.
